Applications by firms to become alternative business structures (ABSs) could take up to nine months to process, the Solicitors Regulation Authority revealed this week. The SRA, which on Tuesday became a licensing authority after two years of preparation, said it is ‘ready and waiting’ to accept forms from new entrants to the legal services market.

More than 10 initial applications were made on the first day. As predicted, the Co-operative Legal Services and personal injury firm Irwin Mitchell confirmed they had begun the process. Eddie Ryan, Co-op’s managing director, said his organisation, founded in 2006, would play a ‘leading role’ in the new era.

The Parabis Group, made up of defendant firm Plexus Law and claimant firm Cogent Law, is also believed to have applied. However, two organisations tipped to enter the market, AA and Saga, told the Gazette they had not yet begun the process.

Tesco, whose brand name is widely used to describe the new ‘Tescolaw’ era, also confirmed it had not applied.

Organisations begin the SRA application process by completing an online expression of interest form before a bespoke assessment pack is created. The normal approval period is expected to last for six months, the SRA said, although the authority can grant an extension of three months for further checks.

The process costs £2,000, plus £150 for every individual seeking licensing.

Ann Morgan, manager of the SRA’s ABS team, said: ‘One size doesn’t fit all, so we’ll have to assess each application on its merits. And while the preparation work has been very comprehensive, we will need to remain flexible in our approach to deal with these new firms.

‘We have to be rigorous and robust - as robust as we are with traditional firms. We’ll be asking for the employment history of everyone going back five years - we need to have detailed information relating to those who want to be regulated by us.’

The opening of the ABS application process by the SRA is a landmark moment in the liberalisation process set in train by the Legal Services Act 2007.

Law Society president John Wotton said that reform is important for the entire profession, not only those seeking to adopt the new business model. ‘ABSs can provide new opportunities and growth for law firms, but equally those not seeking to adopt ABS have an imperative to be more competitive, accessible and innovative,’ he said.

Although the Council for Licensed Conveyancers began handling ABS applications in October, the Ministry of Justice said the addition of the much-larger SRA would potentially enable thousands more firms to take advantage of the new freedoms.

Justice minister Jonathan Djanogly said the SRA’s entry to the licensing process ‘marks another major milestone for UK legal services’. The new structures will allow the sector to ‘reach new heights, as solicitors’ firms develop new markets, join up with other businesses to offer different products and provide opportunities for growth’, he said.

He added: ‘Customers will find legal services more accessible, providing a much more competitive and efficient service.’

Marketing consultancy Rufus Leonard predicted a ‘titanic battle for the hearts and minds of potential customers’ between traditional law firms and new entrants.